Home / Economy / Commodity

Commodity

WORLD WHEAT PRODUCTION TO DECLINE IN 2017-18

In its preliminary outlook for 2017-18 world wheat supply and demand, the International Grains Council on Jan. 19 projected world wheat production to decline about 2 percent from the record outturn estimated for the current year.

The IGC preliminarily projected the 2017-18 world wheat crop at 735 million tons, down 17 million tons from 752 million tons as its estimate for 2016-17.

The IGC noted should its projection be realized, world wheat production would decline for the first time in five years. The 2017-18 crop still would be the third-largest ever. The projection was based on yields broadly in line with the long-term trend and the IGC’s projection for world harvested area for wheat.

The IGC projected the world wheat harvested area in 2017-18 at 221.3 million hectares, down just 0.3 million hectares from 22.1.6 million hectares in 2016-17 and compared with 224.7 million hectares in 2015-16.

INDIAN SUGAR OUTPUT TO BE 21.3M TONS, DOWN BY 9PC

Indian Sugar Mills Association (ISMA) has lowered its sugar production estimate for 2016-17 by about 9 percent.

The private industry body now expects the country to produce 21.3 million tons of sugar as compared to its estimate of 23.37 lakh tons, projected in September 2016.

The central government in its meeting held last Tuesday, this week, had retained its sugar production estimate at 22.5 million tons.

NATURAL GAS RATES WILL AVERAGE AT $3.50 TO 4.00 THIS YEAR

Natural gas prices averaged a little more than $2.50 per mmBtu (million British Thermal Units) in 2016. Those days are over. Prices will average at least $3.50 to $4.00 in 2017.

Prices have more than doubled since March 2016 but gas is still under-valued. Supply is tight because demand and exports have grown and shale gas production has declined.

Henry Hub spot prices increased 2 1/2 times from $1.49 to $3.70 per mmBtu and NYMEX futures prices doubled from $1.64 to $3.30 per.

Nevertheless, gas prices are still too low. Storage was at record high levels throughout 2016 reaching 4.1 Tcf (Trillion cubic feet) and 84 percent of working capacity in mid-December. Storage has fallen 1.1 Tcf in the last month to 61 percent of capacity.

 

KENYA TEA PRODUCTION SET TO DROP IN 2017

Black tea and coffee are recognized as key elements in the Kenyan economy. They are best known for their high quality and excellency, compared to other countries.

And so, Kenya is one of the largest exporters of tea and coffee. The Kenyan black tea, is well-positioned in the global market, as it is Kenya’s top foreign exchange top generator. The EL Nino-induced drought caused havoc in several regions within the dark continent. This phenomenon, is still affecting livestock, and crop production in some African countries, leading to severe food crisis.

The climate change, seems devastating for most of the African economies, depending on agricultural outcomes. Due to the impending droughts in the country, the Kenyan tea production, is expected to drop by 12 percent. After achieving a high-record in 2016 at 473 million kg, tea production is estimated at 416 million kg in 2017.

COAL IS THE NEW BLACK WITH NEW-TECHNOLOGY ENERGY STATIONS

When the power went out in South Australia in September, linking renewable energy to concerns about electricity reliability, it lit the fuse on something unthinkable only a short time before — a return of coal.

As governments grow frustrated by tight gas supplies because of new exports and moratoriums on exploration, the numbers are being done on a new generation of supercritical coal plants of the sort being built by the thousands overseas.

In what has become a pincer movement on renewables, Energy and Environment Minister Josh Frydenberg has been hammering state governments to abolish parochial renewable energy targets and lift moratoriums on conventional and unconventional gas exploration.

SEED PROCESSING CENTRE IN BHARATPUR

Agriculture and Forestry University at Rampur, Chitwan, has established a Seed Processing Centre and Seed Testing Laboratory in Bharatpur in a bid to provide quality seeds to farmers and help them to raise farm output.

Farmers who had long been buying seeds from agents are hopeful that they will be able to gain access to better and improved seeds with the opening of the centre.

The quality of seeds plays a vital role in increasing farm productivity, and we have high hopes that the newly established seed processing centre will increase our access to quality seeds, said farmer Chandra Prasad Adhikari.

The centre was established with the support of the Bill and Melinda Gates Foundation and the UK government’s Department for International Development. It aims to produce, process and distribute quality seeds, according to Sharada Thapaliya, a dean at Agriculture and Forestry University. The centre will also provide services like drying, cleaning, purifying and packaging seeds.

DROUGHT PROBABLE TO AFFECT INDIA MILK PRODUCTION

Going by early indications, the government anticipates a drop in domestic milk production as the drought situation in the State is set to worsen. Minister for Animal Husbandry and Dairy Development K. Raju told on Wednesday that the downward trend in milk production in the Ernakulam and Malabar regions in January indicated the impact of the drought.

While the total milk procured through societies showed an increase of 9.78 percent in November 2016 and 8 percent in December 2016, compared to the previous year, the milk production in January this year has registered a decrease owing to the drought situation and the difficulty in procuring fodder and hay.

Check Also

Gulf News

Gulf

Tea, coffee to lead growth in UAE’S F&B industry The tea and coffee segment would …

Leave a Reply